CenterPoint Energy Inc (CNP)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	809,000	959,000	973,000	1,135,000	4,870,000
Inventory	US$ in thousands	770,000	876,000	608,000	500,000	546,000
Inventory turnover		1.05	1.09	1.60	2.27	8.92

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $809,000K ÷ $770,000K
= 1.05

The inventory turnover ratio of Centerpoint Energy Inc. has exhibited some fluctuation over the past five years. In 2019, the company had a significantly higher inventory turnover of 10.46, which indicates that the company efficiently managed its inventory by selling and replenishing it multiple times throughout the year.

Subsequently, there was a decline in the inventory turnover ratio in 2020 to 3.49, suggesting that the company took longer to sell its inventory during that period. However, in 2021, the inventory turnover ratio improved to 3.84, indicating a better performance in managing inventory compared to the previous year.

In 2022, the inventory turnover ratio further increased to 3.53, showing a continued improvement in inventory management efficiency. Nevertheless, in 2023, there was a slight decrease in the ratio to 2.81, which could imply that the company took a bit longer to sell its inventory compared to the previous year.

Overall, the trend in the inventory turnover ratio of Centerpoint Energy Inc. shows fluctuations, with some years indicating better inventory management efficiency than others. It is essential for the company to monitor and analyze the factors affecting inventory turnover to optimize its operations and maintain a healthy balance between inventory levels and sales.